SiftedAI Launch Day Demo - See What's New Register

Sifted logo

Free Guide: Five Lies You’re Telling Yourself About Your Shipping

by | Jan 15, 2021

3 min read

We talk to shippers every day about their challenges, and we’ve heard just about everything — including the lies they tell themselves about their own shipping practices and costs. 

Most are just too busy or have been doing things a certain way so long that they can’t see how changes in the shipping industry have affected their business. But the two biggest ones can have a major impact on their shipping costs.

“I have the best deal on shipping.”

Nearly every shipper seems to think this, and sometimes they’re right. But after the year we’ve all just had, most don’t have as good a deal as they could for one simple reason: It’s not based on their data.

To truly know what to ask for in a carrier negotiation, you need to first understand your shipping profile and your specific pain points — using your own shipping data. Then you can address those issues by working on the surcharges and rates that affect your costs the most. 

But this isn’t a fix-it-and-forget-it situation either — your carrier agreement requires consistent attention. The chart below illustrates just how crucial continued management is in controlling your costs.

shipping lies

“I know my rate increase for 2021 — it’s 4.9%.”

Most shippers overlook or underestimate the impact of the GRI when it’s announced by the carriers each year. But it’s another issue that’s deeply affected by your shipping profile.

While the carriers announce their average increase, too many shippers make the mistake of assuming that’s the exact increase that applies to them. But the GRI contains a range of changes that might affect you more than other shippers, like:

  • Individual surcharge increases: Additional Handling – Weight, Additional Handling – Dimension, Residential, and Delivery Area surcharges all rose 6.25% or more for next year. 
  • New surcharge triggers: In addition to triggering at 48 inches on the longest side or more than 30 inches on the second-longest side, the Additional Handling – Dimension surcharge will now kick in when a package’s length and girth combined exceeds 105 inches.
  • New fees: FedEx has added a 6% late fee with a standard net-15 payment window. UPS has added a fee for shipping to a UPS Access Point, which will now cost $2.99 per instance.

Were you aware of these changes? If not, it’s time to dig into your data and clean up your agreement. 

Stop assuming and start saving

There are three more assumptions we hear day in and day out:

  • “My contract isn’t up for renewal for another year.”
  • “I can offer free shipping.”
  • “I don’t need to change anything internally.”

Any of those sound familiar? Don’t worry if they do — like we said, they’re common misconceptions. But we want to help you understand them and make the right changes. 

Read more about how to combat these assumptions in our new eBook, Five Lies You’re Telling Yourself About Your Shipping. The sooner you learn what they are, the sooner you’ll be able to get your shipping costs down.

Topics: Carrier Optimization, Contract Optimization, Surcharges
Topics

Check out related resources at Sifted.

Solving Supply Chain Puzzles: How Logistics Intelligence Connects the Dots

Solving Supply Chain Puzzles: How Logistics Intelligence Connects the Dots

Political instability, environmental disasters, pandemics, and even trade policy changes can destabilize global ...
Read More
PARCEL Forum 2024: Key Takeaways and Insights

PARCEL Forum 2024: Key Takeaways and Insights

In September, PARCEL Forum ‘24 brought top professionals from the small-package industry to Dallas. They discussed ...
Read More
Unpacking the (True) Impact: 2025 FedEx & UPS GRI Analysis

Unpacking the (True) Impact: 2025 FedEx & UPS GRI Analysis

As the summer temperatures start to cool down, the shipping world heats up. Peak season looms. Demand ...
Read More
Supply Chain Contingency Planning: Using Logistics Intelligence To Mitigate Risks

Supply Chain Contingency Planning: Using Logistics Intelligence To Mitigate Risks

Globalization is slowing down, and the world is doing everything to fix it and reduce modern-day supply chain ...
Read More
2024 FedEx & UPS Demand (Peak Season) Surcharge Guide

2024 FedEx & UPS Demand (Peak Season) Surcharge Guide

Please note: This article focuses on Ground and Express charges. For a full breakdown of international and other ...
Read More
The 2025 General Rate Increase (GRI) is Coming… What We Expect and How to Prepare

The 2025 General Rate Increase (GRI) is Coming… What We Expect and How to Prepare

As the 2025 General Rate Increase (GRI) approaches, businesses across industries are bracing for the potential ...
Read More
Invoice Auditing 101: How to Audit FedEx & UPS Invoices Accurately

Invoice Auditing 101: How to Audit FedEx & UPS Invoices Accurately

Did you know that on select days annually, both FedEx and UPS pause their money-back guarantees? These blackout ...
Read More
PARCEL Forum ’24 – Sifted’s Roundup

PARCEL Forum ’24 – Sifted’s Roundup

This September, the supply chain’s leading experts will converge in Texas for PARCEL Forum ‘24, the premier ...
Read More
Network Optimization 101: The Impact of Carrier Diversification on Supply Chain Resilience

Network Optimization 101: The Impact of Carrier Diversification on Supply Chain Resilience

FedEx and UPS had the same GRI for 2024 at 5.9%. Down 1% from 2023’s 6.9% increase. American businesses are facing ...
Read More
How To Implement Artificial Intelligence To Boost Your Supply Chain Operations

How To Implement Artificial Intelligence To Boost Your Supply Chain Operations

By 2027, the global last-mile delivery market is expected to soar past $200 billion, up from $108.1 billion in ...
Read More
How Amazon Is Using AI To Become the Fastest Supply Chain in the World

How Amazon Is Using AI To Become the Fastest Supply Chain in the World

Did you know that Amazon has been using machine learning and AI for more than 25 years? Yes, 25 years! That’s ...
Read More
Survey: Consumer Home Delivery Preferences

Survey: Consumer Home Delivery Preferences

In the eCommerce landscape, the way brands interact with their customers is evolving. While optimized store ...
Read More

How Sifted Works

Connect to
your account

Sync
your data

Power your
dashboards

Get Your Logistics
Intelligence Demo

Strategic ways to prevent loss down the line

Services you could be utilizing right now for savings

Ways to cut material costs without cutting quality

Shipping Insights & Alerts
Get updates and track the things impacting your business most

Decision Support
See how supply chain adjustments pay off before you pay out

Carrier Management
Streamline how you manage your carrier operations and contracts

Business Automation
Let software do what it does better than people can

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM is impacting you

Podcast
Hear from industry experts on LeaderShipping

Case Studies
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate your CO2 Emissions

Guides
Download free reports and
expert how-tos

Demo
Get a personalized tour of our software

About Sifted
Get to know Logistics Intelligence

Unboxed Newsletter
Subscribe for parcel news, predictions & tips

Logistics Intelligence
For parcel shippers

Let's get you to the right place!

SIFTED DASHBOARDS
For parcel shippers

AMAZON
Redirect to Valence Intelligence Login

Not sure if you have an account? Email [email protected].